Subscription Cost Calculator
Subscription Cost Calculator
Add up up to five monthly subscriptions, see the yearly total, what annual plans would save, and what the same money could grow to if it were invested instead.
Subscription cost
$499, $299, $199 and $129 a month; annual plans $4,999, $2,999 and $1,299 for three of them; 12% for 10 years
Yearly cost and what the money could become
- M
- the monthly total
- i
- the monthly return: annual % ÷ 12 ÷ 100
- n
- months: years × 12. The × (1 + i) is because each month’s money goes in at the start of the month.
Worked example
$499, $299, $199 and $129 a month; annual plans $4,999, $2,999 and $1,299 for three of them; 12% for 10 years
Monthly total = 499 + 299 + 199 + 129 = $1,126; a year = $13,512
Annual plans save 5,988 − 4,999 = 989, 3,588 − 2,999 = 589 and 1,548 − 1,299 = 249: $1,827 a year
1,126 a month invested at 12% (1% a month) for 120 months = $2,61,614, against $1,35,120 paid
In today's money at 4% inflation: $1,76,737
A monthly amount invested instead for 10 years
| A month | At 6% | At 8% | At 10% | At 12% |
|---|---|---|---|---|
| $500 | $82,349 | $92,083 | $1,03,276 | $1,16,170 |
| $1,000 | $1,64,699 | $1,84,166 | $2,06,552 | $2,32,339 |
| $2,000 | $3,29,397 | $3,68,331 | $4,13,104 | $4,64,678 |
| $5,000 | $8,23,494 | $9,20,828 | $10,32,760 | $11,61,695 |
Small monthly amounts, large yearly totals
Subscriptions are easy to start and easy to forget. Streaming, music, cloud storage, apps, news, gym and delivery memberships each look small by the month, but they add up. This calculator totals up to five of them, shows the yearly cost, and shows how much you would save by paying yearly where a service offers an annual plan. A negative saving means the annual plan costs more than twelve months, which happens.
Annual plans are cheaper only if you keep using the service. Paying for a year up front locks the money in; if you would have cancelled after four months, the monthly plan was cheaper. Switch only the subscriptions you are sure of, and check whether a plan renews automatically at a higher price.
The opportunity cost is what the same money could have grown to if it had been invested every month instead, at the return you enter. This is not a reason to cut everything: some subscriptions are worth far more than they cost. It is a way to see the long-run price of the ones you rarely use. The figure assumes a steady return and level prices; in practice subscription prices tend to rise, returns vary, and gains may be taxed. For a regular investment in detail use the SIP calculator, and to fit the total into a monthly plan the budget calculator. This is arithmetic on the figures you enter, not financial advice.
Frequently asked questions
How do I work out my yearly subscription cost?
Add up the monthly prices and multiply by 12. 1,126 a month is 13,512 a year.
Is an annual plan always cheaper?
Usually per month, but only if you use the service all year. Compare the annual price with 12 times the monthly price, and with how many months you would really keep it.
What is the opportunity cost of a subscription?
What the money could have become if invested instead. 1,126 a month at an assumed 12% for 10 years is about 2,61,614, against 1,35,120 paid.
Why is the figure in today’s money lower?
Because prices rise over ten years. The calculator divides the future value by the inflation you enter, so you can compare it with money now.
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References
- Brealey RA, Myers SC, Allen F. Principles of Corporate Finance. McGraw-Hill: future value of an annuity due.
- Association of Mutual Funds in India (AMFI), investor education: systematic investment and compounding.
- Central-bank inflation targets used as default inflation by currency: Reserve Bank of India (4% CPI, flexible inflation targeting framework); U.S. Federal Reserve (2% PCE); European Central Bank (2%); Bank of England (2% CPI); Bank of Canada (2%); Reserve Bank of Australia (2–3%); Bangko Sentral ng Pilipinas (3% ± 1). Actual inflation often runs above target.